tv Worldwide Exchange CNBC September 22, 2015 4:00am-5:01am EDT
a very warm welcome to you. this is worldwide exchange. >> these are your headlines from around the world. >> volkswagen scandal keeps shares in the red as a board member says there will be personnel consequences. the car maker's u.s. ceo says the company screwed up. >> our company was dishonest with the epa and california air resources board and with all of you and in my german words, we totally screwed up. >> the fall out failed internationally as they call for
a probe in countries like south korea. switzerland launched their own investigations. >> she vows to take on excessive profiteering in the sector. >> hungary orders the army to take on the influx along the border. volume -- volkswagen hitting the skids for another. we're down 4.4% today following the 20% decline yesterday. how did volkswagen take such is a wrong turn? 2013 they ran test on diesel car
emissions. they expected diesel cars sold in the u. s. to be exceptionally clean due to tough u.s. standards but they were surprised to find quite the opposite and reported their findings to the environmental protection agency. the epa finally challenged the car maker and issued a statement calling on volkswagen to issue a recall and warned it faces penalties of up to $18 billion. >> so that really begs the question. what is next? reports suggest the u.s. department of justice will launch a criminal probe. internationally, south korea has opened it's own investigation which it says could expand to all german diesel cars if foul play is discovered. in france, the finance minister called for a european wide probe saying there was no reason to believe french car makers had acted like volkswagen.
>> the supervisory board of volkswagen will convene to recall to discuss the response of the scandal. seeking ahead of that meeting the board member said there will be personnel consequences but warned against hastey decisions. >> meanwhile, the north american ceo said we totally screwed up. speaking at an event he said the company was dishonest and must work to restore trust. take a listen. >> i'm confident and personally committed that this company will do what needs to be done to make things right. >> analysts across the auto industry are responding with harsh words. one analyst said, quote, there is no way to put an optimistic spin on this. this is really serious. deutsche bank adds allegations would go far beyond a recall. jp morgan says it could have ripple effects across the whole
industry. ubs believes there's a high probability that the ceo will re-sign if the group is found to have acted improperly. the potential fines moved to $18 billion. there's added damage to the brand and could go bigger than that. if these guys were forced to cheat in order to get their maybe their technology isn't good enough. maybe in the future their cars won't be good enough as well. >> absolutely. did you know that 1 in 7 people in germany are employed in the auto sector whether it's at one of the big vw brands or auto supply sector. this could have huge repercussions for germany and that's something that the german institute for economic research warned about. big reputational damage in the u.s. but also globally and specifically it could impact jobs in germany. that's the big worry. >> and the moves in stock prices of other car makers, quite
surprising. we did see bmw down yesterday. down a further percent today. none of these others have been implicated in anyway. he came out to try to commend the french auto maker. but they're off about 7.5% since start of trade yesterday. >> i guess the problem is can any manager out there exclude that his own company was involved because maybe they didn't have the knowledge and we don't know whether the ceo of vw had the inside knowledge. maybe he couldn't control the division that was responsible for that. so i think a lot of the companies, daimler for example said we don't have any indication that anything like that happened at our firm but just like what happened with the banks, these operations are so big it's very, very tough to supervise them. >> absolutely. huge scandal and share prices reacting accordingly. for more on the international
fall out of the volkswagen scandal and it's impact on the other car makers, we have this report from seoul. >> the volkswagen issue is expanding into other countries including korea where the ministry of environmental affairs will be conducting emission tests on three different models. this is after the issue came up in the u.s. and the tests in korea will be happening in the middle of october on the gulf, jetta and audi a-3 models. there's speculations that the deception that happened in the emission test in the u.s. also happened in cars imported to korea and they are saying that there's a high chance that the same issue could have happened in korea as well. the volkswagen korea is saying that emission standards in korea are the sames as the ones in europe saying that the recalls in the u.s. have nothing to do
with the models that will be tested in korea so there is a difference between government officials and volkswagen korea at this point and expecting this recall and after effects to mean a positive. the main reason they're saying this is because in the u.s. markets hyundai motors continues to hold on through to its market shares by giving out incentives but expecting to shrink in korea this is expected to be a positive for hyundai. in the emerging markets hyundai and volkswagen are direct competitor for the same market shares so this is expected to be positive for hyundai. >> joining us now is michael bell, he's global market strategist at jp morgan asset management. good morning to you. thank you for joining us. let's kick off and talk about the european auto sector off the back of the volkswagen scandal.
why do you think there's such broad based sell off? is it possible the scandal will feed through as well? >> several of them have come out and said they don't have any issues but no one really knows and there's potential trouble for the auto makers as well. that's why you're seeing the sell off there. we think that the price action you saw yesterday was basically pricing in the things you'll see from the u.s. so potential further bad news there. >> we have to talk more broadly of course about your views on markets in general but rewind 48 hours would this sector have been somewhere you were interested in, thus if certain companies that are effected in share price for the moment are cleared would this be buying opportunities? >> no, we're generally quite cautious at the moment and we
think that the pricing in the sector is not very positive and that you have high exposure to the emerging markets. >> but why. that was the darling of investors at the start of the year. a huge run up in auto shares in part for low euro, low oil prices, low interest rates, do these factors no longer cater to the auto industry? >> it's not all bad news for european autos. we prefer to have them export more to the emerging markets and in general a bit more positive on the domestic stocks such as the banks as well. >> i want to come back to the euro dollar exchange rate. we've seen it bounce back quite a bit over the next couple of months or so. we're no longer at the 105
levels which many thought were so advantageous. do you think that the low euro exchange rate is now fully priced in, it's really not going to create much of a benefit for many exporter stocks? >> we don't think that. you're still likely to see what you saw a year ago and that's not fully priced in and you should start to see that come through in the coming quarter and into the beginning of next year as well. >> is there another factor to think about aside from the fundamental impact of the bottom lines? we've seen the euro rebound upwards and european equities come down. is that going to continue you think? is that something that mario draghi will be concerned about as he's seen the euro bounce back over the last four to six
weeks? >> we think that they are interested in the exchange rate and draghi made it quite clear that they would do more. they were at the same levels prior to the beginning of the year and they basically promised to extend the balance sheet significantly since then and there's the potential that they can do more as well. the euro can go a bit lower and it's positive for the equities. >> is that why you like european equities? we're at the same point we were at in january 2015. >> in many ways that's exactly right. you're back with why you were in january. you have the potential to do more but they have already done a lot. that's not in the price. you've seen the euro come down since then and the equities are back where they were.
also lower borrowing costs. improvement in credit demand which is fundamental if you think of credit as the blood of the economy. it's now pumping through and that should really boost the european economy from here and you're also seeing an increase in the money supply. you'll see a pick up in european growth. >> great stuff, michael. thank you for joining us. now, keep on the front line of the story we kicked off with today with our live blog. you can find that on cnbc.com. keeping all of the updates on the volkswagen story and much more. >> let's get your other top story. hillary clinton will propose a plan to lower the cost of prescription drugs in part by ending drug companies ability to write off consumer advertising as a business expense. at a campaign stop she'll take aim at drug makers for excessive
profiteering. she'll encourage the development leveraging the buying power of the government. she was calling it outrageous and that lead to a plunge in several bio tech stocks state side. biogen down 5.5%. valeant down as well. european drug makers also opened lower. roche 2.5 and novartis with bigger declines off by 1.3%. >> alexis tsipras was sworn in after his party brought home an election victory. he will work to pull greece out of its crisis while officials have said debt relief talks are at the top of his agenda. he wants more solidarity within europe to deal with the flow of migrants into the country. julia looks at what the refugee crisis means for his new
government. >> greece has been on the front line of the refugee crisis. almost 320,000 refugees and migrants arrived in 2015 alone. it's 8 time mrs. than last year and after 7 years of financial crisis in this country at 26% unemployment rate. a third of greeks living below the poverty line we've seen successive greek governments struggle to respond. >> it's horrendous. it is. these people are educated people. >> the eu has allocated 479 million euros to greece spread over the next five years but the former government argued it isn't enough. they were fighting for far more. former economy minister told cnbc the problem is far too big for greece to handle alone but the numbers have to increase and all european countries have to
accept that they have to be part of the solution. >> the crisis certainly featured in the recent election campaign with new democracy accusing the former government of running an open door policy. unlike in germany where the percentage is farlower over 85% of asylum seekers in greece are considered legitimate and from established crisis countries. perhaps more importantly, less than 10% of those arriving here actually stay. up until now it's been about short-term care rather than long-term. but now hungary constructed a fence aimed at keeping unwelcomed migrants out. yet many of the refugees i spoke to said they won't be deterred from leaving. >> i'll leave greece. i want to go to germany. >> but it's not just the economics.
greece's financial woes fuelled discrimination and while the majority of greeks understand the facts and are eager to provide support not everyone agrees. it is the third most popular party in greece despite top party officials spending the last few months in prison awaiting trial rather than campaigning. >> it's really sad. especially for the greek people. they have grandfathers and grandmothers who were exactly in this situation about 90 years ago. >> responsibility for handling the crisis remains with alexis tsipras. it should be a high priority but he'll also be juggling capital controls, bank recapitalizations and debt negotiations and passing crucial economic
reforms. >> other europeans are sick of bailout nations like greece asking for more money though i think it's clear in this situation more support is needed but it's not just a greek problem. other countries like germany, austria, croatia, hungary are all struggling to address a situation that divides the eu. the question is can european leaders bridge that divide when they meet this week? >> and still to come on the show, we have more on the migrant crisis here on worldwide exchange. stay tuned for the latest from brussels as european ministers hold an emergency meeting. we'll be back in two. it's more than a network and the cloud. it's reliable uptime. and multi-layered security. it's how you stay connected to each other and to your customers. with centurylink you get advanced technology solutions, including an industry leading broadband network, and cloud and hosting services -
welcome back. a lot of red behind me. we opened today broadly flat but we weakened throughout today's trade. we're now down 1.4% on the st oxx 600. yesterday it did close up. despite being lead by the autos. that's unwinding today. let's look at the individual markets as well. we have that performance coming out where interestingly the auto stocks are also disappointing
again today despite being soft yesterday they're disappointing once again today and germany down 1 plt 1% but today it's more of a broad sell off. let's look at total. it devested a stake and the ceo of the french energy giant is expected to announce further measures tomorrow to combat the crude price slump. stefen has all the details for us live in paris. >> good morning. total already made announcements in order to adapt the company to the new market conditions and mainly the low price of oil but it's expected to make additional announcement tomorrow during the investor days in london but the ceo of the company is going to announce new strategy,
additional cost reduction and more asset and they already cut the budget to $1.9 billion this year down from last year. the company also says it's on track to meet it's asset disposal plan. $10 billion over the next three years and as part of the plan total announced it sold a part of its stake in the oil project in canada for 233 murder in the second degree. total may be active in terms of mergers and acquisition. it says that without additional resources in the short-term, total may have to even make acquisitions so we may have more announcement on that tomorrow. back to you. >> thank you for that. and total along with other french businesses are on their second day of a trip to iran.
it's part of a bid to bolster economic ties as they prepare for sanctions to be lifted. we'll head out there in under half an hour. stay tuned for that. >> let's talk fashion. london fashion week is in full swing. burberry's election had simple shapes and monochrome colors. another a-lister there was tonya briar. >> thank you, that's kind of you. >> were you on the front row? >> i was. >> double a lister. >> yes. it is one of the biggest shows in london fashion week. it does attract a lot of the stars front row but the story was behind backstage which i talked to the chief executive and creative officer to ask him
about the slow down in china. >> it's such a big part of what we do. i love the two different platforms. last night we launched the collection on snapchat live and that's very relaxed. there's a real ease. it's casual and fun. it's with a couple of beers and a phone and then today the position of this very grand kind of elegant hyde park kind of show with a, you know, 30 odd piece orchestra. and i think it's really important that there's a point of view there. social is relaxed and easy and natural. a show is a show and you want to create something that gives a little memory. >> like other brands and designers how has the downturn in china effected you? >> china is, specifically hong kong, everybody knows there's been a struggle there. the important thing is to just keep making sure that you have a point of view.
making sure that you keep your authenticity and making sure that you give the best customer service in those countries. >> does it worry you at all? >> you know, the world is volatile in lots of different places but you have to control what you can control so we, of course everything is -- you have challenges the whole time but nothing the static so it's the way you manage that volatility. >> of course sales have been down at burberry and he's taken over both roles in the next year and the question remains to be seen how is that going to balance out. >> he has been doing well despite the overall global head winds. >> he is very well respected in the fashion industry itself and it just remains to be seen how the balance of roles is going to pan out. >> but they use social media quite a bit. even for this launch. >> yes, they were so innovative. they were the first brand to use social media to their advantage.
last year they tweeted the show. this year they had it on snapchat. they showed the collection before it was shown on the cat walk to their 100 million snapchat followers. >> that's an innovative strategy. thank you for that tonya. >> thank you. >> are we fully wrapped up? >> last day today of london fashion week. >> but you'll be front row of another couple of shows? >> i'll try to get myself in there. >> thank you so much as ever. >> still to come on the show, nigeria's central bank governor backing himself in a corner? that's up next. my name is watson. i'm helping doctors keep people healthy. take ted here. i'm pulling together data he shared from his wearables, health records and family history, so we can analyze it. he's doing everything right... for the most part.
volkswagen emission scandal keeps shares in the red as a board member warns there will be consequences. the ceo says the company screwed up. >> our company was dishonest with the epa and california air resources board and all of you. we have total screwed up. >> the fall out failed internationally as they call for a probe and other countries like south korea and switzerland launched their own investigations. >> hill kri clinton's war on
drugs sends shares into the red after she vows to take an profiteering in the sector. >> hungary deployed an army as ministers meet again in brussels in a bid to reach a coordinated response. we got some u.k. august public finance data coming out and we've got the public sector net borrowing which had been expected to be plus 9 billion has come in at plus 12.1 billion so that has risen seasonally. usually ticks up in august anyway but it's risen much more than expected. the psncr is minus 0.6 billion.
we'll have a look at sterling again. they're down about .25%. it hasn't weakened too significantly but has just softened as we have come into it. >> let's have a look at european markets and they accelerated their losses throughout the last hour or so. ftse 100 off by 1.9%. cac 40 off by 2.3%. the autos driving us lower given the continued ripple effects we're feeling from the vw scandal and the french finance minister wanting to see a year wide probe. this is after we bounced back in yesterday's trading session. the euro stoxx 50 the better gauge. we're off by 2.1%. >> let's have a look at bonds. yesterday we did see u.s. stocks rise and that saw bond prices fall. we hit 2.18% but today the
sentiment a little bit more risk off so that's compressed fractionally to 2.17%. we've also seen a little yield compression in the bund. 0.648. not too much movement today thus far as you can see though the yen strengthened by about .5%. 119.9. elsewhere, basically flat. 11181. >> the chinese president begins his state visit today. in an interview with the wall street journal he defends the stewardship of chinese economy. he says the yuan devaluations this summer was necessary to diffuse systemic risk and urges foreign investors to take the longer term view. hank paulson organized the summit with him.
we have an exclusive interview with him on closing bell. >> the u. s. senate is expected to take the first steps to avoid a shutdown next week. they plan to introduce a short-term spending bill that doesn't contain funding for planned parenthood. although democrats have enough to block that. >> leaving further 90 people injured. islamist militant group bo boko haram is to blame for the attack but no group has come forward to claim responsibility. they have been hit hard by the fall in oil prices and they have been calling for the currency naira to be further devalue yd. the central bank of nigeria is set to meet later on today. let's get perspective on that
and other frontier movements. good morning to you. thank you for joining us. it's interesting that the president has also spoken out against the further devaluations of the naira. that in itself is pretty good but at the same time you have to wonder how independent the central bank still is. >> any policy that the central bank has to put into place should be thought of as an independent decision. when it comes to the naira it's a politically sensitive topic. they're an import dependent economy. it can effect the poor. so i think it's a decision taken with much of everyone in the mitt cal spectrum. >> we've seen collar shortages and you have to wonder to what extent it will slow down economic growth. where would they be dropping to in this difficult environment
continues. >> growth drops to 3.1% in 2015. that's very different to the 5 to 6% gdp growth per year we've become used to nigeria. what's shocking is the number in q-2 of this year. now yes there railroad transitory issues and fuel shortages that slow down economic activity but these are having an import on people's ability to import and that's closing part of the economic slow down. >> let's talk more about him. why is he taking so long to complete the other economic appointments of his cabinet? >> we need to bear in mind that this is a historic shift for nigeria. it usually takes six weeks to appoint a government. this time we have a whole new set of policy makers that could be in place and i think that he is really prioritizing quality over speed. he wants to make sure that the people he appoints are not held
by other vested interests. they are the right people to drive nigeria down the right path. >> so sounds like you're still optimistic about hill. do you think he'll achieve the types of things that that wave of optimism was about him when he came to power? >> he will but it will take a lot of time. feedback is that it's taking too long. his focus is on improving security and corruption. but they take a long time to come to fruition and the market wants to see someone dealing with the economic crisis and they have been disappointed. >> you have recently taken a panafrica trip. racked up many air miles. the frontier markets in the past we thought they were more resilient when it comes to fed tightening, is that still the case? >> to a certain extent. the real impact through fed tightening on economies in africa comes on the effect of the commodity market.
africa is still one of the most commodity dependent regions in the world and it's positive. but what we need to think about is the overlay in terms of chinese growth and chinese demand for commodities and the end of the super cycle and policy makers have tough decisions to make in terms of how to deal with that. >> thank you for joining us this morning. >> a group of 130 french businesses are on the second day of a trip to iran. total and airbus among the delegation. french firms are opening to reestablish business negotiations with teheran ahead of lifting of economic sanctions which expected to take place in 2016. ali is live with more of this. >> hi, wilfred, that's right. about 130 french companies wrapped up a two day visit in which the french opened the first major trade office in teheran as well leaving the
charge of european countries vying for the share of the iranian market. companies including agriculture and luxury goods. it lucrative share of the market dwindles. the reputation is being criticized because of their tough stance on the nuclear talks and companies like persia have taken a hard hit here. they have roughly departed in 2012 because of the sanctions leaving their iranian partner which is the largest car manufacturer and state owned company here in the lurch. now that iran's fortunes have reversed with this nuclear deal, companies like persia face stiff competition from volkswagen and daimler and even american companies that corner the market because they're so popular.
the french got a foot in the door before everybody else in the hospitality industry. they opened the two hotels near the main airport and they want to expand their hotel business in the country. they're the first people to do so. wilfred. >> ali, thanks for that. now for more on france's developing business relationship with iran head to cnbc.com. we have full analysis and comments from leeading figures across french industry. >> stay tuned for the latest from brussels as european ministers hold another emergency meeting. oh, look. we have a bunch of...
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hundrgary authorized it's ay to deal with those arriving at its borders. the country is unable to secure it's borders without the help of the military. let's get up to hadley gamble in brussels. another emergency ministers meeting. what can we realistically expect? >> we heard warning shots across the bow from angela merkel that it was going to take more meetings down the road. but we heard from the president of the parliament that said we could get an agreement tonight at least many terms of a voluntary redistribution program. we want every country to voluntarily take folks on. and that will be for the 150,000 refugees and migrants they have been talking about for the last several days. no word on the migrants moving into europe. certainly the situation in hungary and the knock on effects of croatia and hungary as well.
the ministers that i spoke to last tweak from slovakia and hungary they were angry and fearful and unfortunately for europe and angela merkel they have the support of their voters at home so it will be difficult to find consensus today. >> hadley thank you for that. we'll discuss this further in studio joining us is phoebe griffith. direct director for migration. thank you for joining us. can we just see how far into this crisis are we in terms of the movement that we're seeing, are we just at the tip of the iceberg or quite a way into this? >> we are halfway through potentially. the summer months are the months where we're likely to see most migrants for obvious reasons but europe should be preparing for the long-term rather than thinking of this as a one off
crisis that we will cover come and things will go back to normal. it does need to grapple with the issue of asylum. the system is very coherent and we don't have measures to deal promptly with these big surges of migration and that's an issue swept under the carpet for a long time. >> there's been a number of proposals, most recently one by the egyptian business moguls. he said he would be happy to buy a greek or italian island and resettle a lot of the migrants there. in practicality terms that's tough to enact but don't you think there's so many proposals that we should laud? >> that's an amazing level of aspiration and brings to light how petty the debate has become in europe. this is a tiny number of migrants. especially if you put into the context of the 1 million refugees that arrived in
germany. however it's naive. the u.k. has a long history of receiving refugees and we know that it's challenging. we're very, very vulnerable. of course there's huge success stories but we need to be very mindful of the fact that refugees do have very particular needs and that states receiving refugees need to be well prepared before they arrive. >> it's, indeed, very, very challenging as you say. you mention germany. they have been open about welcoming people. are they ready to integrate those people, do you think? >> historically germany had great challenges in it's policy. the turkish still struggle. there's still big questions around the naturalization process in germany. germany has a big question around dual citizenship.
the out comes aren't favorable in many ways. so while the out pouring of public sympathy is credible we need to think about the long-term strategy and i don't think that germany quite has it right. >> i wonder given that we've gone through the greek mess and we see that the financial monetary union of europe wasn't working and it took a lot of work to work around the details of that and now that we're seeing that humanitarian union isn't working either what's europe good for? >> there's really interesting parallels. where as the euro crisis really exposed deep economic cleavages in europe this crisis is exposing a whole other set in relation to politics and values and other things that we thought brought the european union together so it's important that some kind of consensus is rea reached. i hope we will see some progress on this. >> thank you for your time.
the director for migration at ippr. moving on, bhp billiton announced its new debt. it will raise cash for general corporate purchases. they have not disclosed the shares and trading lower by 4.6%. >> emerging markets in asia are the next frontier for siemens. he asked joe kaeser about china. >> it's what they said they would do as a reform agenda and if you'll look at really what the reform agenda. if you'll look at what it looks into this is about going to advanced manufacturing, car industry, aviation, it's been part of the five years plan high
up in the priority but that would also mean that you restructure the current industrial environment and here we see that the reforms got stuck a little bit and delayed so it is a challenge. >> let's talk about india if we could. you have been reported talking about the governments latest reforms plans and saying it's not enough. they could and should be doing more. what? >> we welcome and actually applaud the prime minister's intent now to make india, make it india, some manufacturing in india and that's why we said, look, we have been there for many, many years. siemens manufacturing powerhouse. we can bring it to india. so we decided to go with the
whole managing board to india. we were there last week. discussed with the prime minister about how we could help and decided to invest 1 billion euros more in the years to come. we're decisive about what can be achieved so we're committed to make it happen in india. >> to be partners, in other words. >> long-term partners. if you look at energy management, infrastructure development, health care, next generation manufacturing it's all about partnership. that's not selling a block of chocolate and going home and trying something else. >> back here to asia, em asia, i think, there's a lot of nervousness and fear and a lot of money leaving. this 7-day forecast short-term capital, equities bonds, et cetera, right? longer term for a company for a
c conglomerant, how much opportunity do you see in em asia? >> this is about setting stage for legal ground. it goes from anticorruption all the way to having a solid base on recruiting and finding the right talent. but i can't understand that there is question marks at times on how the whole development, in malaysia, in thailand, or also maybe in myanmar will turn out. however if you look at the crisis in 2008-2011 and come out of it that's how it could turn out to be. that's why i believe siemens also has a responsibility to contribute to societal
development. we go there and create jobs and we create training and we believe society will contribute to us later. >> it's been called one of the worst kept secrets in silicon valley. apple is pressing ahead with plans for an electric car setting 2019 as a target shipping date. the project is code named titan and apple plans to triple it's team. the journal says the ship date doesn't mean when customers can receive their cars. apple doesn't plan to make it fully autonomous. quick look at how am shares are trading in german trade. down by 0.1%. >> do we think it will be shaped hike an apple? >> might be. i just wonder whether the apple ecosystem works in there. if you plug in your ipad, plug in your iphone. >> i don't think you'll drive it from your ipad. >> well, you could, why not? it's 2019.
>> sure. but this is clearly a massive, massive move if they do it but it sounds like they are doing it and go for it. i look forward to seeing what it's going to look like. we're definitely obviously moving toward electric vehicles and driverless cars as well and who would bet against them being one of the companies to achieve that. >> they're flush with cash and they can always workout some of the kinks so they won't have a problem at all. one of the lessons that they may have learned from tesla is that this is a very time consuming and very expensive experiment but if am can't do it, who can can? >> well, exactly but think of the difference as you said. like the technology versus aerodynamics engineering. these are very different fields. so 2019 is a long time away. but is it that far away? >> didn't they say in back to the future everything will look
quite different in 2020. >> something like that. >> one to watch for apple of course. now we want to hear from you on this topic as well. would you buy an apple car if one came out? join the conversation and get in touch with us firstname.lastname@example.org or via twitter @cnbcwex. carolyn is offering to buy one for the first-person to tweet in. >> do we have a price tag for this one. >> no, whatever it is they'll gift one to you. >> got to have deep pockets for that. if you live in new york city or philadelphia you may not get your new iphone 6s on time this weekend and you can blame pope francis. they're temporarily cancelling all deliveries in certain area where is the pope is visiting this week for security reasons. fed ex is still operating but customers may face delays. the new iphone goes on sale and starts shipping on friday. staying we electric cars tesla plans to officially launch the new model x suv on september
29th. the company sent out invitations to the event on monday. a base version starts at $75,000 while a fully loaded one is $132,000 without upgrades. they also promised the model 3 in the next two years. shares rose more than 1% on monday. we got that price indication for tesla, for the suv, apple car i guess, 100,000. >> by when? >> well, 2020, 2022. >> the thing for electric cars ultimately is have they got good performance? are they affordable which tesla is getting closer to but still pretty expensive but from my point of view are they easy to use? is the infrastructure there in order to make the most of them. think of how many times you're out and about and your iphone runs out of battery. >> there's so many charges stations nowadays though. >> not really.
>> if they get better ones. >> there's certain charging stations in certain cities but not globally or in rural areas and the like and having to fill up is one thing but at least you know there's always going to be a petro station nearby. not knowing where you can charge the car is the big issue. that's what will hold these up. maybe by 2020 if and when an apple car comes the infrastructure is there. let's have a quick look at european markets. of course quite a sharp and steady sell off throughout today's trading session. we're down around 2%. france down 2.35%. >> okay. we are going to be taking a look at asian markets and they're very much in the green in today's trading session.
shanghai comp with a gain of almost 1%. the japanese market, the nikkei is still closed for trade. it will get back online later on this week so many of the buyers are out but in the absence of the japanese -- >> you can see oil prices soft today down around 1.5% and wti is down 2%. >> plenty more coming up on the show. narrowing the field. another republican candidate drops out of the race for the white house. we have the full story coming up later. stay tuned. it's more than a network. it's how you stay connected. with centurylink as your trusted technology partner, you get an industry leading broadband network and cloud and hosting services. centurylink. your link to what's next.
welcome to worldwide exchange. i'm carolyn roth. >> i'm wilfred frost. here are your headlines from around the world. >> volkswagen keeps shares in the red as there will be personnel consequences. the ceo says the company screwed up. >> our company was dishonest. with the epa and the california air resources board. and with all of you. and in my german words we have totally screwed up. >> hillary clinton's war on drugs sends european and u.s.pharma shares into the red after she vows to tak